‘The rejuvenation of onshore O&G exploration in Sarawak would spur the state’s socio-economic growth to bring it another step closer towards the Post COVID-19 Development Strategy 2030 goals.’ – Datuk Patinggi Tan Sri Abang Johari Tun Openg, Premier of Sarawak
‘As we take this step toward resuming onshore O&G activities after decades of inactivity, we are reaffirming our commitment to rejuvenate exploration onshore Sarawak and drive early commercialisation of onshore O&G discoveries.’ – Datuk Patinggi Tan Sri Abang Johari Tun Openg, Premier of Sarawak
The recent revival of onshore well drilling in Miri, after a 50-year break, carries great significance that goes beyond its surface implications.
First and foremost, it signifies a major breakthrough in the field of oil and gas (O&G) exploration in Sarawak.
It is a clear indicator of Sarawak’s initiative to achieve indigenous ownership and operation of oil and gas ventures, ultimately benefiting the region and its people.
It is also a remarkable achievement for PETROS, which was established in 2017 with the mission to lead the state’s active involvement in the O&G sectors.
Furthermore, it marks a significant milestone for the inaugural Onshore Petroleum Contract awarded to PETROS in July 2021 under the Sarawak Oil Mining Ordinance (OMO) 1958.
Simultaneously, this development is expected to create more job opportunities for the people of Sarawak, with an estimated 75 per cent of the positions intended for Sarawakians. This percentage is likely to increase as operations gain momentum.
However, beyond these important aspects, the resurgence of onshore oil drilling unmistakably reaffirms the enduring significance and validity of the Sarawak Oil Mining Ordinance (OMO) 1958, which faced challenges with the enactment of the Petroleum Development Act (PDA) 1974.
It is worth noting that despite the introduction of the PDA 1974, the Sarawak OMO 1958, which governs oil mining in Sarawak and its continental shelf, remains in force as it has never been repealed.
The continental shelf is an integral part of Sarawak’s territory since before Malaysia Day, as established by the Sarawak (Alteration of Boundaries) Order in Council, 1954. Notably, the ordinance has retained its validity even during the 1969 Proclamation of Emergency.
Nevertheless, despite these established facts, doubts persist among certain groups regarding the legitimacy of Sarawak OMO 1958, prompting the Sarawak government to pursue legal remedies. With this latest development, it is anticipated that these actions will put to rest any lingering doubts about the validity of OMO 1958.
Oil mining in Sarawak began in 1911, and for over a century, since the issuance of the Rajah’s Order XXIX, 1921, Sarawak has had laws and regulations governing oil mining. These laws, including the Oil Mining Ordinance, regulate oil mining activities and the use and occupation of land for such purposes. They also safeguard the interests and investments of companies engaged in oil exploration and mining in the state.
During his address at the momentous event’s launch at the Grand Old Lady, known as Miri’s Oil Well No. 1, on Canada Hill on October 11, Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg reaffirmed this commitment.
He emphasised, “As we take this step toward resuming onshore O&G activities after decades of inactivity, we are reaffirming our commitment to rejuvenate exploration onshore Sarawak and drive early commercialisation of onshore O&G discoveries.”
The Grand Old Lady was chosen as the venue for the ceremony because it holds special significance as the site where the first oil well in Malaysia was drilled in 1910.
The onshore drilling, as announced, will be a collaborative effort between Petroleum Sarawak Berhad (PETROS) and Petra Energy Berhad (PETRA) in the SK433 block, covering an area of approximately 3,100 square kilometres, including the discovered Adong Kechil West field.
The Sarawak government, along with all stakeholders, certainly deserves resounding applause for this momentous achievement. Every Sarawakian should take pride in this historic milestone. It is evident that this achievement brings Sarawak one step closer to achieving the objectives outlined in the Post COVID-19 Development Strategy (PCDS) 2030, a long-term plan crafted by the State Government to guide Sarawak’s progress towards becoming a developed state by 2030.
With the revival of onshore oil drilling, which indirectly marks the beginning of Sarawak’s journey to produce oil and gas through companies owned by Sarawakians for the benefit of Sarawak, I am confident that any lingering doubts about the validity of the Sarawak Oil Mining Ordinance 1958 will be dispelled, and critics will cease their skepticism.
At the same time, I also hope that this achievement effectively dispels any doubts cast by critics on the sincerity of the state government’s efforts to reclaim the rights enshrined in the Malaysia Agreement (MA) 1963, of which the Sarawak OMO 1958 is an integral part.
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DISCLAIMER:
The views expressed here are those of the writer and do not necessarily represent the views of the New Sarawak Tribune.
